By Balford Henry, News EditorTHE MANAGEMENT consulting firm, KPMG Peat Marwick, has proposed an organisational restructuring of the National Water Commission (NWC), in an audit report currently being studied by the Ministry of Water and Housing, as well as senior NWC officers and the trade unions representing its staff.
Contacted yesterday, the NWC's communications manager, Charles Buchanan, said that he would not comment on the matter. "The Commission's official position is not to comment on it at this time."
The audit was commissioned in 2001 by the NWC arising from a directive from the Ministry and was broken down into two components - the preliminary report issued in February last year and the final report which is now being studied. The auditors, the Ministry, NWC and trade union representatives are expected to meet to discuss the report on April 15.
According to the KPMG Peat Marwick, one of the key considerations in developing the implementation strategy will be the cost of making the adjustments to the staff size and composition. The Gleaner understands that just over 20 per cent of the current staff could be affected.
The retrenchment segment of the restructuring could cost an estimated $190 million, incurred in two stages - $140 million in respect of adjustments resulting from the proposed restructuring and $50 million in respect of staff rationalisation, the report said.
The report also found a number of faults in the operation of the Commission, covering the Internal Audit, Legal Affairs, Finance and Administration, Human Resource and Information and Systems departments.
In terms of the Information and Systems Department, which covers preparation of water bills for the company's over 300,000 customers, they found a lack of up-to-date equipment and tools, continuously changing technology which made systems and skills "quickly obsolete" and a low level of computer knowledge and skills among the users of the technology.
"Of approximately 2,000 calls received per month, an estimated 300 are related to the reporting faults," the report said.
Several deficiencies were also found in the Finance and Administration Department including: a low level of automation, resulting in a reduced ability to produce comprehensive and timely information to be used in decision-making process; no "well communicated" performance standards derived through the benchmarking of operations and performance levels; the use of significant resources on redundant double-checking and verification activities; and low levels of accountability.
It also found:
- An inefficient human resource information system which rendered data
gathering for decision making inaccurate, difficult to manipulate and labour
intensive.
- A backlog of over 1,000 cases before the Resident Magistrate's Court,
in a Legal Department which had only one lawyer and had to contract out 80
per cent, or 560, of the 700 cases which needed to go to trial. These include
cases involving customers, contracts and real estate.
- An Internal Audit Department which raised concerns about the scope
of audits, its tendency to be reactive rather than proactive, as well as the amount of time spent on ad hoc audits.
Turning to the issue of the targets set by the Commission, including potable water to all by 2005, the report said: "In order for the National Water Commission to operate efficiently within its existing resource base, it is evident that the Commission needs to go through a period of consolidation."
It added that, as a consequence, the rate of expansion would diminish as the NWC re-engineered its position to adequately meet the demands of the water supply and waste water treatment systems.
It said that only after consolidation and performance improvement could NWC
be in a position to Re-assume its role as implementing agency.
KPMG, however, suggested that expansion could take place through another entity within the Ministry, with the NWC eventually assuming operational control of the new facilities on a programmed basis. If another entity cannot be identified, "the impact of the NWC's already stretched capabilities must be recognised and the Commission be resourced accordingly from the (national) budget."
KPMG recommended a reduction of the regional offices of the NWC to two main divisional offices - East and West - each headed by a vice-president and the replacement of the district offices by area offices grouping two or three parishes; demarcation of the areas on the basis of water supply systems in existence; improved distribution efficiency, collection treatment and disposal of water; greater customer orientation focus; and better environmental/regulatory management.
